Thread: How to set up a payroll

I've been in business for three years now and I'm thinking about hiring a helper during the mowing season. I my self am 18 years old and I'm at a point now that I need help in order to keep up with the work and more importantly school. Since I'm younger I want to do it the right way and NOT pay under the table.

What forms and such I do need to get for tax purposes and such. I'm located in PA.

I already talked to some one who is interested in working for me, a possible problem is that he is 14 yrs old. I Dont know the laws regarding to running power equipment and such. Plus child labor laws. If anyone could give me a pointer in the right direction that would be really appreciated.Posted via Mobile Device

If you want to grow your business and do things the right way, "invest" in an accountant. I could not function without my accountant. He answers all my questions and gives me great advice on how to keep things going good.

We use Paychex. Money well spent, we aren't large enough for office help and it alleviates us from doing the paperwork in house. Or you could use a CPA, either way, I left it to professionals just in case we get audited I didn't want anything to chance doing it myself.

First you have to get a EIN number. Employer Identification Number. You will have to do this if you are to have legal employees.

I pay me employee weekly on the last work day of the week. I go to http://www.paycheckcity.com/ and use the hourly payroll calculator to figure out the withholdings etc. I staple the print out of this that looks like two check stubs to my employee's time sheet he filled out.

My employee has a checking account at my bank. This allows me to transfer the money electronically to him. I have a record of the payment going to his account because the bank maintains my statement. I then have a seperate account which I transfer money to to cover his withholdings as well as my portion. This way when quarterly taxes are due I simply write a check from that account which is fully funded.